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Are Investors Unfairly Punishing Teva Pharmaceutical Industries Limited (NYSE:TEVA)?

Teva Pharmaceutical Industries Limited (NYSE:TEVA) has a beta of 1.46. The stock’s Relative Strength Index (RSI) is 53.72, with weekly volatility at 2.78% and ATR at 0.31. The TEVA stock’s 52-week price range has touched low of $8.44 and a $13.30 high. Its shares traded higher over the last trading session, gaining 3.37% on 06/07/21. The shares fell to a low of $10.39 before closing at $10.75. Intraday shares traded counted 10.7 million, which was -34.73% lower than its 30-day average trading volume of 7.94M. TEVA’s previous close was $10.40 while the outstanding shares total 1.10B.

Investors have identified the Drug Manufacturers – Specialty & Generic company Teva Pharmaceutical Industries Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $12.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Teva Pharmaceutical Industries Limited (TEVA) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TEVA, the company has in raw cash 1.74 billion on their books with 2.7 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 12.4 billion total, with 12.09 billion as their total liabilities.

TEVA were able to record -555.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -434.0 million. In cash movements, the company had a total of -405.0 million as operating cash flow.

Potential earnings growth for Teva Pharmaceutical Industries Limited (TEVA)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Teva Pharmaceutical Industries Limited recorded a total of 3.98 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -9.42% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -11.85%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.1 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.88 billion. This allows shareholders to hold on to 1.10B with the recently reported earning now reading 0.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.60 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TEVA sounds very interesting.

Is the stock of TEVA attractive?

In related news, Executive VP Global Operations, Drape Eric sold 40,000 shares of the company’s stock in a transaction that recorded on May 21. The sale was performed at an average price of 11.01, for a total value of 440,320. As the sale deal closes, the Exec. VP Chief Legal Officer, Stark David Matthew now sold 37,884 shares of the company’s stock, valued at 387,125. Also, Executive VP, Global R&D, Fridriksdottir Hafrun sold 19,066 shares of the company’s stock in a deal that was recorded on May 11. The shares were price at an average price of 10.22 per share, with a total market value of 194,830. Following this completion of acquisition, the Executive VP Global Operations, Drape Eric now holds 19,804 shares of the company’s stock, valued at 202,413. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.78%.

3 out of 22 analysts covering the stock have rated it a Buy, while 16 have maintained a Hold recommendation on Teva Pharmaceutical Industries Limited. 1 analysts has assigned a Sell rating on the TEVA stock. The 12-month mean consensus price target for the company’s shares has been set at $12.20.

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